March 11 2024
Soweto is one of the most dynamic residential property markets in the country. It is a bustling neighbourhood with some 37 suburbs which are home to over 186,000 properties, more than double compared to 1994 according to Lightstone data.
Seeff Properties’ Soweto division explains that property values have grown notably faster compared with the rest of Johannesburg, basically doubling over the last ten years making property a good investment. Khosi Sibiya and Phindi Mphahlele, licensees for Seeff Soweto, say there is high demand for property, both to purchase and to rent.
More than 2,000 property transactions worth more than R1.1bn have been recorded for Soweto over the past year. Generally, a 40%-plus of buyers tend to be under 35-years of age with the majority being first-time buyers, according to Lightstone, the research group.
Soweto is a landmark in the history of South Africa and a popular tourist area with famous landmarks such as Kliptown, where the Freedom Charter was drawn up, the Hector Petersen Memorial and Vilakazi Street, once home to former President Nelson Mandela and Bishop Desmond Tutu, both Nobel Peace Prize winners.
Soweto is in demand with property buyers, especially first time buyers according to the Seeff Property Group. While the majority of properties are freestanding, there is growing interest in estates and sectional title as urbanisation and densification continues, said Khosi and Phindi.
An advantage remains the affordability in the area despite the appreciation of property prices over the past decade. This enables people to get onto the property ladder more easily. On top of that, there is growing demand for rentals provides incentive to invest in property for the rental market.
Soweto is growing. Affordability and family ties are often reasons why people continue buying in the area, but it is now also a modern neighbourhood with public and private schools and shopping malls. It offers accessibility to the Western Bypass and arterials, the universities (UJ and Wits) and hospitals and good public transportation (Rea Vaya, Putco, trains and taxis).
Young people are taking the opportunity to get onto the property ladder given that most of transactions there fall below R750,000 and almost all fall below R1.5m. Only ten transactions have been registered above R3m in the past year.
The more exclusive areas include Diepkloof with an average price of R2m, Dobsonville at R1.5m and Pimville at R1m. The affordability is well illustrated considering that you can purchase a four-bedroomed home with a garage and three flatlets in Dobsonville for R1.4m.
A top end property in Diepkloof with three bedrooms and two garages is priced at R1.649m. Property taxes tend to be lower compared with other Gauteng areas. If you buy below R1.1m there is the added benefit of no transfer duty. First-time buyers can also qualify for financial assistance through the FLISP scheme. Note though that FLISP can be tedious process as the state can be slow to release the funds.
Protea Glen, Soweto
247@propertyflash.co.za
